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United States

2013

Aid

Aid quality is just as important as aid quantity, so the CDI measures gross aid as a share of GDP adjusted for various quality factors: it subtracts debt service, penalizes “tied” aid that makes recipients spend aid only on donor goods and services, rewards aid to poor but relatively well-governed recipients, and penalizes overloading poor governments with many small projects.

Small share of aid to poor and better-governed recipients (selectivity rank: 23)

Trade

International trade has been a force for economic development for centuries. The CDI measures trade barriers in rich countries against exports from developing countries. It also penalizes costly importation processes and restrictions against purchasing services from foreigners.

United States’ trade performance

Score: 7.1

Rank: 3

Strengths

Low tariffs on agricultural products (4.4% of the value of imports; rank: 3)

Low tariffs on beef (3.1 % of the value of imports; rank: 3)

Low tariffs on other meats (3.1 % of the value of imports; rank: 3)

Low agricultural subsidies (equivalent to a tariff worth 12.9% of the value of imports; rank: 9)

Few documents required for importation (5 documents; rank: 1)

Weaknesses

High tariffs on textile (8.8 % of the value of imports; rank: 23)

High tariffs on clothing (9.8 % of the value of imports; rank: 23)

Finance

Rich-country investment in poorer countries can transfer technologies, upgrade management and create jobs. Conversely, policies that permit financial secrecy of companies and banks can facilitate illicit activities and financial flows abroad. The CDI rewards policies that support healthy investment in developing countries and promote transparency in financial transactions at home.

United States’ finance performance

Score: 5.1

Rank: 15

Strengths

Low score in the Bribe Payers Index (rank: 8)

Vigorous prosecution of home-country bribe payers

Active participation and leadership in extractive industries transparency initiatives such as the Extractive Industries Transparency Initiative (EITI) and the Kimberley Process on blood diamonds

Scores above average in the Financial Secrecy Index for regulations in place to promote transparent financial transactions within its jurisdiction (rank: 7)

Does not provide assistance to companies looking for investment opportunities in developing countries

Does not provide official support for outflows of portfolio investment

Migration

The movement of people from poor to rich countries provides unskilled immigrants with jobs, income and knowledge. This increases the flow of money sent home by migrants abroad and the transfer of skills when the migrants return.

United States’ migration performance

Score: 3.6

Rank: 20

Strengths

Large share of foreign students from developing countries (73.5%; rank: 11)

Weaknesses

Bears small share of the burden of refugees during humanitarian crises (rank: 20)

Small number of immigrants from developing countries entering the United States (rank by share of population: 18)

Environment

Rich countries use a disproportionate amount of scarce resources, and poor countries are most vulnerable to global warming and ecological deterioration, so the CDI measures the impact of policies on the global climate, fisheries and biodiversity.

Security

Since security is a prerequisite for development, the CDI rewards contributions to internationally sanctioned peacekeeping operations and forcible humanitarian interventions, military protection of global sea lanes, and participation in international security treaties. It also penalizes arms exports to poor and undemocratic governments.

United States’ security performance

Score: 4.6

Rank: 17

Strengths

Significant personnel contributions to internationally-sanctioned peacekeeping and humanitarian interventions over last decade (rank by share of GDP: 8)

Low personnel contributions to UN peacekeeping and humanitarian interventions over last decade (rank by share of GDP: 25)

Has not ratified the Convention on Cluster Munitions (CCM), Comprehensive Nuclear Test Ban Treaty, Mine Ban Treaty, and is not a party to the International Criminal Court

High level of arms exports to poor and undemocratic governments (rank by share of GDP: 23)

Technology

Rich countries contribute to development through the creation and dissemination of new technologies. The CDI captures this by measuring government support for R&D and penalizing strong intellectual property rights regimes that limit the dissemination of new technologies to poor countries.